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Waters Corporation (WAT), headquartered in Milford, Massachusetts, is a global leader in analytical instruments and laboratory solutions. The company is valued at a market cap of $22.2 billion and specializes in liquid chromatography (LC), mass spectrometry (MS), and thermal analysis technologies, serving industries such as pharmaceuticals, life sciences, food safety, environmental testing, and material sciences.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and Waters perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the diagnostics & research industry.
Its cutting-edge instruments and software enable precise chemical analysis and molecular detection, playing a crucial role in drug development, quality control, and scientific research. With a strong focus on innovation, sustainability, and data-driven insights, Waters Corporation continues to expand its global footprint and enhance laboratory efficiency through advanced analytical solutions and digital transformation initiatives.
Despite its notable strength, WAT slipped 13% from its 52-week high of $423.56, achieved on Jan. 10. Over the past three months, WAT stock has gained 1.2%, trailing the Health Care Select Sector SPDR Fund’s (XLV) 4.3% gain over the same time frame.
In the longer term, shares of WAT declined 4.8% over the past six months, lagging behind XLV’s 10.7% gains over the past six months. However, the stock climbed 7.5% over the past 52 weeks, outpacing XLV’s marginal returns over the last year.
WAT has been trading above its 200-day moving average since late July but under its 50-day moving average since mid-February.
On Feb. 12, WAT shares closed down more than 5% after reporting its Q4 results. Its adjusted EPS of $4.10 surpassed Wall Street expectations of $4.02. The company’s revenue was $872.7 million, topping Wall Street forecasts of $857.1 million.
Dr. Udit Batra, President & CEO of Waters Corporation, attributed the strong performance to "double-digit growth in Pharma" and highlighted that "instruments and recurring revenue both grew high single-digits in constant currency." He emphasized the company's strategic initiatives and operational execution as key drivers for this success. WAT expects full-year adjusted EPS to be between $12.70 and $13.
WAT’s rival, Agilent Technologies, Inc. (A), lagged behind the stock with a 13.6% fall over the past six months and 17.2% losses over the past 52 weeks.
Nevertheless, Wall Street analysts are cautious about WAT’s prospects. The stock has a consensus “Moderate Buy” rating from the 18 analysts covering it, and the mean price target of $405.65 suggests a potential upside of 10.1% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
